Carry Trade Calculator for Australia traders

This calculator computes the expected annual carry from a forex position based on the interest rate differential between two currencies, adjusted for your broker's swap markup. Designed for Australia traders who need AUD-denominated results.

Carry trade profitability depends on the net interest rate difference between the two currencies in a pair, minus what your broker charges to hold the position overnight. If you're long the higher-yielding currency, you receive the difference; if short, you pay it.

Formula:

Annual carry = (rate differential - broker markup) × notional × direction-sign

Where direction-sign is +1 for long positions and -1 for short positions. The result is in your account currency. For AUD accounts trading AUD/JPY, no conversion is needed — the notional is already in AUD. For other pairs or account currencies, the calculator applies the current spot rate to convert the carry into your account's base currency.

Example: AUD/JPY

• Pair: AUD/JPY
• Base rate (AUD): 4.10%
• Quote rate (JPY): 0.10%
• Broker markup: 0.50%
• Notional: AUD 100,000
• Direction: Long

The rate differential is 4.10% − 0.10% = 4.00%. Subtracting the broker's 0.50% markup gives 3.50%. Multiply by the notional of AUD 100,000 and the direction sign (+1 for long).

Result: AUD 3,500 expected annual carry (positive) per AUD 100,000 position

This means holding this long AUD/JPY position for one year would generate AUD 3,500 in swap interest, assuming rates and markups remain constant. Note that the round-trip cost (spread + commission) is not included — factor that in separately when evaluating the trade.

• JPY pairs use 0.01 pip-step (vs 0.0001) — the calculator handles this automatically, but be aware that swap values per pip differ from major pairs.
• Non-AUD account adds FX-conversion drag — if your account is in USD or EUR, the carry is converted at the prevailing spot rate, which adds a small FX risk component.
• Mini/micro lots scale linearly — a AUD 10,000 position (0.1 standard lot) would yield exactly one-tenth of the result: AUD 350 per year.
• Weekend swap triple — most brokers apply triple swap on Wednesday nights; the calculator assumes uniform daily rates for simplicity.

• Compound Calculator — projects how reinvested carry payments grow over time.
• Profit/Loss Calculator — computes total P&L including carry, spread, and commission for a held position.
• Swap Rate Calculator — breaks down the daily swap cost/credit for any pair and lot size.

• Swap — the interest credited or debited for holding a forex position overnight.
• Carry trade — a strategy of buying a high-yielding currency and selling a low-yielding one to earn the interest differential.
• Interest rate differential — the difference between the central bank rates of two currencies in a pair.

If you don't have a broker yet and want to test these calculations on a demo, FxPro accepts Australia residents. We are FxPro affiliates — see disclosure.

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